Retirement to Oregon

[JEX3897]

What is the name of your state? New Mexico

Hello,

My wife and I live in Albuquerque, NM and are going to retire from the government here in January 2007. We rent a house here. We have bought a camper and are planning on leaving our things here in our home, going to the Eugene/Springfield area of Oregon and looking for a house to buy so that we can move our things directly from this house to the home we buy in Oregon rather than having to put everything in storage.

We don't want to buy a home until after I retire in January 2007 because the tax would be too high on a lump-sum distribution this year. We would rather be Oregon residents before we take out this distribution as their tax base seems lower than New Mexico's, but we need to take our funds out in order to buy our home. We have to be domiciled in Oregon or residents to have this money taxed at Oregon's rate rather than New Mexico. I'm not quite sure what the requirements are for becoming an Oregon resident, but from what I have read, we need a permanent address to be classified as residents. So, it's like a Catch-22 which we cannot figure out.

I would appreciate any help or advice about this.

Thanks

[xylene]

I think Dylan is applicable...

Originally Posted by JEX3897

What is the name of your state? New Mexico

Hello,

My wife and I live in Albuquerque, NM and are going to retire from the government here in January 2007. We rent a house here. We have bought a camper and are planning on leaving our things here in our home, going to the Eugene/Springfield area of Oregon and looking for a house to buy so that we can move our things directly from this house to the home we buy in Oregon rather than having to put everything in storage.

We don't want to buy a home until after I retire in January 2007 because the tax would be too high on a lump-sum distribution this year. We would rather be Oregon residents before we take out this distribution as their tax base seems lower than New Mexico's, but we need to take our funds out in order to buy our home. We have to be domiciled in Oregon or residents to have this money taxed at Oregon's rate rather than New Mexico. I'm not quite sure what the requirements are for becoming an Oregon resident, but from what I have read, we need a permanent address to be classified as residents. So, it's like a Catch-22 which we cannot figure out.

I would appreciate any help or advice about this.

Thanks

Or Jagger: You can't always get what you want...

Here are your options.

Rent a property in Oregon and use that as your residence until you take the distribution and buy a home.

and either:

Carry the rented house in NM and stay their for job...

or

store the beloingings in NM and live in the trailer in NM to finish up job.

or

move the belongings to the rented house in Oregon and live in trailer in NM...


Another option.

Buy a house with low down payment and pay it off in 2007 from disbursment.

or

Quoting Jagger: Ya get what ya need...

Find a house in Oregon for Rent to Own...

----

All of the options have trade offs, like extra expenses, multiple moves, not having a fixed place in NM, which would get old..., numerous pitfalls.

Talk to a real accountant who can address your whole financial picture and tell you if the amount your would save in taxes is worth the expenses... If this is a savings of a few hundred or even 1 to 3k...

well think of it this way... the gas for a camper from NM to OR would be at least $300